Marathon Petroleum tops Q3 profit estimates, beats on revenue

Marathon Petroleum (MPC) reported third-quarter adjusted earnings of $26.93 per diluted share on Nov. 3, above the $24.72 consensus estimate compiled by Finnhub.

Net income attributable to MPC was $7.4 billion, or $26.59 per diluted share, compared with $1.4 billion, or $4.51 per share, in the third quarter of 2025. Adjusted net income was $7.5 billion, up from $915 million, or $3.01 per share, a year earlier.

Revenue rose to $56.49 billion from $35.85 billion a year earlier and came in above the $46.5 billion consensus estimate compiled by Finnhub. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, was $11.73 billion, compared with $3.21 billion a year earlier.

Here's how the company did:

• Adjusted EPS: $26.93 vs. $24.72 expected, according to Finnhub
• Revenue: $56.49 billion vs. $35.85 billion a year earlier, against $46.5 billion expected, according to Finnhub
• Adjusted EBITDA: $11.73 billion vs. $3.21 billion a year earlier

The refining and marketing segment posted adjusted EBITDA of $9.9 billion, versus $1.8 billion a year earlier. Margin per barrel was $45.70, against $17.60.

The company said the results were driven primarily by higher market crack spreads in all regions. Crude capacity utilization reached 100%, up from 95%.

The midstream segment's adjusted EBITDA was $1.9 billion, versus $1.7 billion, driven by increased rates and throughputs. The renewable diesel segment posted adjusted EBITDA of $254 million, compared with a loss of $56 million a year earlier.

Corporate expenses totaled $328 million, compared with $238 million, which the company attributed primarily to higher incentive compensation.

Chairman, President and Chief Executive Officer Maryann Mannen said: "Our value chain capabilities remain a defining advantage for us, capturing opportunities to enhance margins across dynamic market conditions."

Capital returns and divestiture

The company returned $3.3 billion to shareholders in the quarter and had $3.1 billion left under its share repurchase authorizations as of Sept. 30. Its board approved an incremental $5 billion authorization, which would bring the total available to $8.1 billion.

The company announced a 10% increase in its quarterly dividend. MPLX, the partnership MPC controls through its general partner interest, increased its quarterly distribution 12.5% for the third consecutive year and expects $3.1 billion of annual distributions to MPC.

MPC also announced the divestiture of the St. Paul Park and Mandan refineries, including related midstream assets, for $4.2 billion. MPC will receive $3.45 billion of the proceeds and intends to reinvest the capital, primarily in the Gulf Coast.

MPLX will receive $750 million, a 9x multiple on forecast 2027 adjusted EBITDA of the associated logistics assets. The transaction is expected to close at the end of 2026.

Fourth-quarter outlook

For the fourth quarter, the company expects distribution costs of $1.73 billion, up from $1.65 billion in its Aug. 4 outlook. Planned refining turnaround costs are set at $230 million, down from $290 million.

The company expects crude oil refined at 2,830 thousand barrels per day, up from 2,820, and total refinery throughput of 3,080 thousand barrels per day, up from 3,005. Corporate costs are forecast at $300 million, up from $260 million. Refining operating costs are unchanged at $5.60 per barrel.

MPC's 2026 capital spending outlook, excluding MPLX, is $1.5 billion.